CRA rules that contributions to a legal defence fund of public interest could qualify as charitable contributions by routing them through a municipal-controlled fund

Donations made to two non-profit corporations to fund the costs of defending a legal action respecting the local County did not give rise to charitable credits. In order to permit future donations to generate such credits, the local municipality, which is a qualified donee, will set up a fund which will be beneficially owned by it and will issue charitable receipts for donations made to the fund. The fund will then be used to pay legal fees submitted by the two NPOs and approved by the municipality in its discretion.

CRA ruled that donations to the municipal fund could qualify as charitable gifts.

Neal Armstrong. Summary of 2016 Ruling 2016-0634031R3 under s. 118.1(1) – total charitable gifts.